§ 8.10. Municipal borrowing power.

(a)

Subject to the applicable provisions of law, the city may borrow money for any purpose within the scope of its powers and permitted by law, and may issue bonds or other evidences of indebtedness therefor. Such bonds or other evidences of indebtedness shall include, but not be limited to, the following types[:]

(1)

General obligation bonds, the principal and interest of which are payable from taxes levied upon the taxable real and personal property in the city and for the payment of which the full faith and credit of the city are pledged, when authorized by a three-fifths vote of the electors having the constitutional qualifications for voting on the issuance of general obligation bonds, voting thereon at any general or special election;

(2)

Special assessment bonds which are issued in anticipation of the payment of special assessments for the purpose of defraying the cost of any one or more public improvements, which bonds shall be either solely an obligation of the special assessment district, or both an obligation of the special assessment district and a general obligation of the city;

(3)

Revenue bonds, as authorized by law, which are secured only by the revenues from a public improvement and do not constitute a general obligation of the city;

(4)

Mortgage bonds, as authorized by law, for the acquiring, owning, purchasing, constructing, improving, or operating of any public utility which the city is authorized by law to finance in this manner;

(5)

Bonds issued in anticipation of future payments from the motor vehicle highway fund or any other fund of the state which the city may be permitted by law to pledge for the payment of the principal and interest thereof;

(6)

Water main extension bonds, in an amount not to exceed two hundred thousand dollars, for the payment of which the full faith and credit of the city are pledged, for the refunding from time to time of moneys advanced or paid on special assessments imposed for water main extensions as buildings are connected with such water main extensions, which bonds shall be payable in not more than thirty years;

(7)

Tax anticipation notes, which may be issued in anticipation of the collection of taxes in or during the current or next succeeding fiscal years of the city or any other years permitted by law, in the manner and subject to any limitations provided by law;

(8)

Calamity bonds, issued in case of fire, flood or other calamity for the relief of the inhabitants of the city and for the preservation of municipal property, in a sum not to exceed three-eighths of one per cent of the assessed value of the real and personal property in the city and shall become due in not more than five years.

(b)

All collections on special assessment rolls or combination of rolls shall be set apart in a separate fund and shall be used for the purpose for which levied and for the payment of the principal and interest of bonds issued in anticipation of such special assessments. As to such of said bonds as are also a general obligation of the city, if there is any deficiency in a special assessment fund to meet the payment of the principal or interest to be paid therefrom moneys shall be advanced from the general funds of the city to meet such deficiency and shall be replaced in the general funds when the special assessment fund shall be sufficient therefor.

(c)

Each bond or other evidence of indebtedness shall contain on its face a statement specifying the purpose for which the same is issued and the proceeds thereof shall not be used for any other purpose, except that, whenever the proceeds of any bond issue, or a part thereof, remain unexpended and unencumbered for the purpose for which said bond issue was made, the council may, by the concurring vote of not less than six members, authorize the use of such unexpended and unencumbered funds;

(1)

For the retirement of such bond issue, or

(2)

If such bond issue has been fully retired or if any of such funds remain after such retirement, then for the retirement of other bonds or obligations of the city, or

(3)

If there is no other indebtedness, then for such other purpose or purposes as may be permitted by law.

(d)

No bond or other evidence of indebtedness, regardless of type or purpose, shall bear interest at a rate exceeding six per cent per annum.

(e)

All bonds and other evidences of indebtedness shall be signed by the mayor and countersigned by the clerk, under the seal of the city. Interest coupons may be executed with the facsimile signatures of the mayor and clerk. A complete and detailed record of all bonds and other evidences of indebtedness shall be kept by the controller. Upon the payment of any bond or other evidence of indebtedness, the same shall be marked "cancelled."

(f)

Any officer who shall violate the provisions of this section shall be deemed guilty of a violation of this charter.

State law reference

City authority to borrow money on the credit of the city and issue bonds therefor, MCL 117.4a(1); city authority to borrow money and issue bonds therefor in anticipation of the payment of special assessments, MCL 117.4a(2); municipal finance act, MCL 131.1 et seq.